Exercise E-3-17

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Cost of Goods SuiU Finished Goods 2. Assu a- (d) 640,000 b. Bal. 50,000640,000 Bal. 120,000 d. Wh lem diff fro ending lnrat had heen applied to production during the year is distributed am balances in the accounts as follows: 19,500 Work in Process, ending Finished Goods, ending Cost of Goods Sold 58,500 312,000 $390,000 EXERCIS Harwo Overhead applied basis of hours v mated For example, of the $40.000 ending balance in Work in Process, $19.500 was overhead that had been applied during the year Require Ce 2. A I. Identify reasons for entries (a) through (d) 2. Assume that the company closes any balance in the Manufacturing Overhead account direct to Cost of Goo ds Sold. Prepare the necessary journal entry. 3. Assume instead that the company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied in their ending balances. Prepare the necessary journal entry, with supporting computations. 3-17 Plantwide and Departmental Overhead Rates; Job Costs L03-1, L03-2, LO3-3 Delph Company uses a job-order costing system and has two manufacturing departments- Molding and Fabrication. The company provided the following estimates at the beginning of Molding Fabrication Total 20,000 30,000 50,000 Fixed manufacturing overhead costs Variable manufacturing overhead per machine-hour $700,000 $210,000 $910,000 3. $3.00 $3.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs: 4 EXE Lee rec Job D-70 Direct materials cost Direct labor cost Molding Fabrication Total $375,000 $325,000 $700,000 $200,000 $160,000 $360,000 20,000